Trends

TRENDS IN THE AGING OF THE WORKFORCE
Excerpt from the NGA Senior Workforce Fact Sheet:
NGA:National Governors Association Best Practice on Social, Economic and Workforce Development .

*The number of people in the labor force who are 55 years of age or older will increase by 49 percent from 2002 to 2012.
*In comparison, the number of workers 16 to 24 years of age is projected to increase by 9 percent during the same time period.
*Findings from a national survey indicate that over half of all employees anticipate
working past retirement. Yet, only 24 percent actually do work after age 65.
*There is a projected labor shortage due to retirements and a shift of mature workers
from blue collar to white collar and service jobs. The number of retiring baby boomers
will particularly impact specific industries such as utilities, aerospace, transportation
and federal and state governments.

BENEFITS OF MATURE WORKERS STAYING EMPLOYED
*By working longer, seniors contribute more to the growth of local and state economies
and rely less on public support services such as Medicaid.
*The benefits for businesses to retain knowledgeable and skilled mature workers can
outweigh the costs of hiring new employees. Replacing an experienced worker can
cost a business 50 percent or more of the person’s annual salary as well as institutional
knowledge.
*Older adults attached to the labor market have greater financial security by earning
more money and by contributing to retirement plans for longer periods. A single man
75 years of age could approximately double his annual income level by retiring at age
70 instead of 62.v By working longer, many older workers also have prolonged access
to medical insurance.
*Research indicates that seniors who participate in productive activities such as work
have better physical and mental health and lower mortality rates.